Asked by Jessica Hegyi on Jul 13, 2024
Verified
An economy's production of two goods is efficient if
A) the goods are produced using only some of society's available resources.
B) the economy is producing at a point inside the production possibilities frontier.
C) it is impossible to produce more of one good without producing less of the other.
D) it is possible to produce more of one good without producing less of another good.
Production Possibilities Frontier
A curve that illustrates the maximum viable combination of two products that can be produced with fixed resources and technology.
Efficient
An economic condition where resources are allocated in the most optimal way, maximizing the production of goods and services without wasting any resources.
- Comprehend the value of the production possibilities frontier (PPF) and its consequences.
- Comprehend the correlation among efficiency, opportunity cost, and points of economic production.
Verified Answer
JE
Joseph EstradaJul 17, 2024
Final Answer :
C
Explanation :
Efficiency in production means that the economy is operating on its production possibilities frontier (PPF), where it is not possible to produce more of one good without sacrificing some of another, indicating all resources are being used efficiently.
Learning Objectives
- Comprehend the value of the production possibilities frontier (PPF) and its consequences.
- Comprehend the correlation among efficiency, opportunity cost, and points of economic production.